JUDGMENT

G.N. Ray, J.-Leave granted. Heard learned counsel for the parties.

2. The short question that arises for decision in this appeal is whether the appellant which is government company wholly owned and controlled by the Central Government is excluded from the purview of the Kerala Construction Workers Welfare Funds Act 1989 (Act No. 20 of 1989) hereinafter referred to as the Welfare Funds Act.

3. The appellant company entered into an agreement for construction of a stadium at Kaloor, Ernakulam, Kerala with the respondent No. 2 Greater Cochin Development Authority. The terms of the contract inter alia stipulated that sub contractors to be employed by the appellant for execution of the contract were to be approved by the respondent No. 2. The appellant commenced work of construction of stadium and from time to time engaged different contractors on a turnkey basis.

4. The respondent No. 2 started making deduction from the part payment of the bills raised by the appellant at the rate of 1% of the billed amount for the works executed by the appellant on account of contribution under the Welfare Funds Act and the schemes framed thereunder. The appellant company protested against such d